Small Cap Feast

Small Cap Feast – 19 May 2020

Dish of the Day:

Off the Menu:

What’s Cooking in the IPO Kitchen?

Breakfast Buffet

CAP-XX 2.65p £14.5m (CPX.L)

FY Jun 20 update from the specialist in the design and manufacture of thin, prismatic supercapacitors and energy management systems.

Revenue for the year ending 30 June 2020 is expected to be around 15% higher than the prior year at approximately A$3.7m (2019: A$3.2m). Revenue in the second half of the financial year has been affected by a delay in supercapacitor shipments, as some customers have delayed delivery dates and due to the impact of COVID-19 on CAP-XX’s manufacturing output. Adjusted EBITDA for the year ending 30 June 2020 is expected to be a loss of approximately A$2.0m (2019: a loss of A$1.6m). The increase in the expected EBITDA loss is due to the factors referred to above and legal costs from the Ioxus patent infringement case.

The current sales order book for the underlying CAP-XX product lines is greater than twice the level at the same point last year. This increase has been driven by the medical, security and telecommunication market segments.

First Derivatives 2825p £772m (FDP.L)

FDP announces that it has signed a global partnership agreement with Tata Consultancy Services (TCS), a leading global IT services, consulting, and business solutions organization, to develop and deploy solutions based on Kx technology and targeted at TCS’s client base across multiple industries.

TCS has been the growth and transformation partner to leading corporations across industry verticals, helping them harness the power of IoT, AI and Machine learning to reimagine their business models.

KEFI Minerals 0.935p £13.2m (KEFI.L)

The National Bank of Ethiopia, Ethiopia’s central bank, has now approved the signed term sheets with the project finance banks who are expected to provide the long term development debt finance to the Company’s Tulu Kapi Gold Project.

Rockhopper Exploration 6.2p £28.2m (RKH.L)

Further to the Company’s full-year results announcement on 8 April 2020, cost reductions have been initiated which are aimed at reducing corporate overheads by approximately 30 per cent compared with 2019 levels. These measures include, but are not limited to:

Certain of these cost reductions will result in a one-off cost to the Company during 2020.

Alpha FX 700p £280m (AFX.L)

The FX risk management and payments specialist servicing corporates and institutions internationally, today announces the appointment of James Carey as Director of Technology with immediate effect.

James brings significant experience to Alpha, having spent 6 years at Betfair, most recently as Head of Technology, where he was responsible for the Betfair Exchange, the largest sports betting exchange in the world, where he managed a platform that handled 3 billion requests and 700 million transactions per day.

AdEPT Technmology 211p £53m (ADT.L)

AdEPT Technology Group is on course to win more business in the Unified Comms (UC) marketplace through a new strategic partnership with 8×8, announced today.

Responding to significant market demand, the new partnership, which provides a unique complement to the AdEPT portfolio, will allow AdEPT to meet customer requirements for easy and rapid rollout of cloud Unified Communications and Contact Centre services.

Online Blockchain 14p £1.2m (OBC.L)

The listed blockchain company, announces that its Brazio cryptocurrency has hit another significant milestone.

Brazio ( https://braz.io/ ), a listed secure digital currency for the people of Brazil, underwent its first halving on May 13th. Halving is a cryptocurrency event where the issuance of new coins is halved. Miners of Brazio (those responsible for adding new transactions to the blockchain) will see their block reward reduced from 200 BRAZ to 100 BRAZ.

There are currently 83 million Brazio coins in existence with allocation capped at 210 million. The lower supply coupled with existing high demand is expected to be a positive signal for the crypto’s price ( BRAZBTC) .

Induction Healthcare 98.5p £29.2m (INHC.L)

The healthcare technology company that helps healthcare professionals deliver better care more efficiently, announces that it has entered into a conditional share purchase agreement to acquire Zesty Limited a digital healthcare patient engagement platform company. £500k cash and 12.4m shares to be issued as consideration. Zesty’s platform provides an integration layer with a hospital’s electronic patient record or patient administration system and a portal that allows patients to manage their hospital outpatient appointments, read their administrative and clinical correspondence, attend a video based consultation and store a personal copy of their clinical record, through this integration layer.

For the year ended 31 December 2018, Zesty reported revenue of £1.04 million and a net loss before tax of £0.51 million, with a net current asset position of £0.33 million as at 31 December 2018.

Itaconix 1.55p £4.2m (ITX.L)

ITX has received $0.2 million in new funding from a loan under the US Small Business Administration’s Paycheck Protection Program.

The Company received the maximum amount allowed under the program based on its payroll and may qualify for partial forgiveness under the terms of the loan if certain payroll conditions are met. If these conditions are not met or the Board chooses not to seek forgiveness, the loan is repayable in equal instalments over eighteen months commencing in December 2020. John R. Shaw, CEO of Itaconix, stated: “As we continue to experience increasing demand for our detergent polymers, this funding will assist us with staffing levels to support growth in customer volumes. I am pleased that Itaconix can help working families and contribute to the US Small Business Administration’s efforts to maintain employment during the current pandemic.”

Alumasc 75p £27.1m (ALU.L)

Gatic, part of the Alumasc Group, has been awarded a number of contracts in the Middle and Far East over the past three months, totalling in aggregate, in excess of £4 million. These contracts are for the supply of access and drainage products for a number of projects, including the third runway at Chek Lap Kok airport in Hong Kong, the container terminal 2 at Hamad Port in Qatar and at Nadi airport, Fiji. Supply has already commenced, and these contracts are expected to be delivered over the next 24 months.

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Derren Nathan
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